Audit Committee Meeting May 12, 2021

00:16 - First item on our agenda is citizens participation for anyone who has registered, you’ll be allowed to address the board only on the items posted on this agenda in accordance with board policy bed.

00:27 - Is there anyone that wishes to address the board? All right.

00:30 - We will consider that item closed. Item two is to consider approval of the minutes of the March 10th, 2021 audit committee meeting.

00:38 - Those were sent out in our board book packet.

00:40 - I assume everyone has read through those minutes.

00:42 - Is there a motion to approve or is there any yet move approval as presented? Thank you.

00:47 - Second. The motion. Thank you.

00:49 - All those in favor. All those opposed motion carries.

00:53 - Thank you. All right. Item three is to review the internal audit work plan and schedule of work completed to date.

00:59 - For fiscal year 2021. Mr. Hayden chairman Sanders members of the audit committee.

01:07 - Dr. Null. Good morning. Welcome to the last audit committee meeting of the school year.

01:13 - Um, it’s been a busy time for internal audit.

01:16 - Get right to it here. You just thought you were going to give her head too.

01:30 - I’ll just advance it for now. Try it again.

01:36 - Here we go. For activity funds, we completed Grand Oaks.

01:42 - We’ve got a Caney Creek and Cox intermediate and progress.

01:48 - And you see, we’ve got three left to finish over the summer.

01:51 - So we are proceeding well on those. Any questions on activity? All right.

02:00 - The operational audits, uh, the flex 20 construction audit, um, easy, and his team do a fantastic job of controlling costs of tracking costs.

02:16 - I’m really impressed. I’ve got 20 years of experience and it’s one of the best control environments that I’ve seen for that, that, that kind of money.

02:24 - So we didn’t have any findings. And in fact, uh, the last two observations that we had from the previous, from flex 19 word, um, so, and they adopted this great, um, Project mates, uh, platform.

02:42 - So in turn a lot, it was able just to go in and pull vendor receipts and invoices and kind of everything was right there really made it a lot more simple to do, and we definitely will not need outside help to do it Moore now.

02:59 - So any questions on the flex 20. All right, Peims follow up.

03:09 - This was an audit that we did for the 2019 20 school year.

03:16 - Um, so we, you know, there were enough issues that we came back and did a formal follow up and you can see the numbers.

03:24 - They haven’t really changed a lot. The first one, there are still, um, A lot of inconsistencies between the schools there for internal audit.

03:37 - The biggest issue is just the missed attendance.

03:41 - Not so much the late they’re an hour late. Well, they’re not supposed to be, but it’s more of the, you didn’t take attendance at all.

03:49 - I recall. Uh, in Peims years ago, they used to have periodic, maybe quarterly or bi-monthly meetings.

03:58 - Do they still, is that still a process? Yeah, they do their audits.

04:01 - They bring all their right. And so is that the place that these types of errors could be found should be found? I’m just asking.

04:09 - Yeah. I mean the Peims, uh, department is.

04:14 - One of our suggestions was that they just pull up the information on the schools that they do quarterly and, and share that with everybody.

04:22 - And they’re doing that. I just don’t know if that information is being really looked at at the school.

04:27 - I think that truthfully, I think part of the struggle this year is.

04:32 - Attendance is one of the things that’s almost impossible in the COVID environment because it is not here, but they can, if they don’t enter the school today, they can log in at home.

04:43 - And so this can be something that we can really focus on moving into next year, because our environment will be very different as far as attendance goes.

04:51 - Cause if they’re virtual, they’re going to be.

04:53 - Different campus, not, not, um, not in their homeschool.

04:58 - So I think we can continue to make improvement.

05:01 - I do think this is a very challenging year to see growth in this area.

05:04 - It’s that’s a good point. So it may challenge the virtual students versus in-person.

05:09 - I can see that Dr. Hines, you mentioned that, you know, we are working on that, our assistant superintendent.

05:20 - But I know Dr. culture this year. Attendance for teachers are not great because when isolated, so students can’t take attendance, the environment, plus Dr.

05:41 - Null labs. They haven’t changed for This, you actually been telling people, wait tomorrow, really isn’t until they can do it before midnight in school they’ve been present this year, the environment has been impacted by this whole virtual.

06:06 - Now we did take all the virtual teachers out of them.

06:09 - Those numbers. Right. Right.

06:15 - Right. Every teacher could have a virtual kid isolated.

06:19 - Okay. So you mentioned these, um, these error rates are consistent with what you found before.

06:29 - Yeah. So they’re there, they were pretty much in line with what we had in 2019, 2020.

06:35 - So is the plan then to do another followup next year? Yes.

06:40 - We all continue to follow up on this, just like the band instruments.

06:44 - I mean, that’s going to be one of the ongoing, um, follow ups.

06:49 - The internal audit does annually. One of the things that I’d like to just know is if we have a process in place where the district level teams is working with the local campus.

07:03 - And they’re meeting and doing their audits.

07:06 - Is that process effective or not? Because it seems to me that that’s one of the controls in place and that control environment.

07:12 - And if that process is failing us, then, then we need some, we need to make some sort of changes.

07:19 - Uh, to that. So I just don’t know the answer to that question the next year, as they say, when we do this again, we’ll have a better picture of what it looks like in a normal.

07:30 - Yeah. Okay. And I do think this challenge is probably more on the plate of the principal and the teacher than it is on the Peims clerk.

07:38 - So I think they can only do what they can do.

07:42 - They can’t fix it. The principal, ultimately I got the teachers are the ones that have to take it.

07:48 - So I think you got it. You know, they, they just serve reporting results.

07:51 - Right. I think we have to fix it on the other side of that.

07:54 - That’s perfectly acceptable. All right.

07:58 - Any other questions? Okay. And just one more thing.

08:00 - Um, next year we know they’re doing a followup on this.

08:02 - Could you keep an eye on any schools that are doing it? Well, Right.

08:07 - So maybe there’s some best practices we can share with some of the other campuses.

08:13 - Okay. That’s a great book. That is a good thought band instrument.

08:22 - Um, do y’all know in turn a lot, it’s been working closely with Dr.

08:27 - Horton and, um, they have, he has issued the final inventory guidance and you should have a copy of that guidance.

08:36 - Um, just, you know, high level, it, it, uh, covers the head director responsibilities, you know, issuing instruments, the interest school movement of instruments.

08:48 - Checkout policies and most important, the annual inventory process and guidelines.

08:55 - And as I said earlier, internal audit will be there.

08:59 - We, one of the things I’m most proud of in the last couple of years of internal audit is we really have forged partnerships.

09:07 - With the people that we’ve been auditing, I think easy would agree.

09:10 - And I know Dr. Horton would or independent, but we’re also a partner working to help improve things.

09:19 - And we will continue to do that with the band instruments going forward.

09:23 - I think that’s a good way of approaching internal audit on any level is to be a partner.

09:30 - Although, like you said, you have to be independent as far as trying to present.

09:35 - Uh, audits and findings and observations. But part of your role like Ms.

09:41 - Chase was saying is to provide them with best practices and with, with ways to improve.

09:46 - Uh, it’s not just a gotcha kind of department.

09:50 - It’s more of a here I’m, I’m truly here to help.

09:53 - And while some may or may not leave that, I think that if you approach it with that type of attitude, And that you’re going to get a lot of cooperation.

10:02 - And ultimately the district wins, which I think is the best result.

10:07 - Well, I mean, w in turn a lot at worked with Dr.

10:09 - Horton on these policies and, um, you know, he doesn’t hesitate to reach out to us and I don’t hesitate to reach out to him.

10:18 - Um, and it’s been a excellent collaboration and we’ve actually gotten a lot of work done since the original.

10:27 - Band audit. Um, so I’m, I’m, I’m proud of that.

10:30 - They have a question about the procedures, the trouble here, when we saw Dr.

10:36 - maybe a Dr. . Um, one of the comments that I had submitted when we saw the original draft was about this added level of oversight of the campus principal involved in there.

10:48 - Um, and I see that that’s still in there on the inventory.

10:52 - Can you kind of explain the thought process of having them involved because I, and I’m not putting our principles down in any way, but.

10:58 - To my knowledge, none of them are former band directors.

11:00 - And you know, they’re not necessarily gonna know the difference in a mellophone that needs repair or one that’s ready to.

11:07 - They’re just going to kind of have to take the band directors.

11:11 - I think there. Thank you. Mr.

11:13 - Moore there. May I, for clarity? I think there are two.

11:17 - I think there are two things, just a little bit of context, you know, the first three pages of this document, um, that some, uh, have contains and vetted.

11:27 - Um, expectations that have never been formalized before.

11:32 - And so I’m very glad of that. So the outgrowth of that is the, so what do we do about it factor? And I think the last two pages of the document as I’ve printed them have the, um, the step-by-step procedures and then the verification.

11:48 - Um, at the step-by-step procedure part, um, the expectation is, and this is where internal audit comes back in is that, um, they’ve been to the campuses they’ve seen, they’ve physically seen the instruments.

12:03 - So that’s the fail safe as opposed to the principal having to go in and go now, is that a Piccolo or a flute? Right.

12:08 - So, um, so we’re, we’re partnering with them with my office, with, um, Mr.

12:14 - Hayden’s office so that the burden of, of accountability is not on the principal to identify the instrument it’s on the principal to say, okay, I trust that the inventory as presented kind of like a textbook inventories, that they don’t go through and count every textbook as a principal, but, uh, that they verify that the procedures have been followed.

12:35 - They verify that the, um, the inventory as currently accurate in, in the charms database management system and the printed backup.

12:44 - Are both when they are submitted and signed off by the director and all the directors at the campus, uh, the principal’s signature verifies that they are also in agreement that they believe that that has all been vetted.

12:58 - Is that okay? I just didn’t want to hold them accountable.

13:03 - If the inventory says there’s 19 sousaphones and there’s only a test.

13:06 - No, I don’t. I, and I appreciate that opportunity to clarify now.

13:10 - I don’t think that was ever the original intent of it.

13:11 - Do I think as, as a protection for the principal, I can speak as a former principal, you know, you’re responsible for everything on the campus as the principal, and this is a big deal.

13:20 - And so if I’m going to be held responsible as the principal.

13:24 - For making sure that the inventory is done properly.

13:26 - I want to be in the loop. I want to be in the, I don’t want to be counting Piccolo’s cause I couldn’t pick one out.

13:32 - Um, but, but I do want to know that the process is done and I want to be able to have that conversation with band director and say you did it.

13:40 - And that’s the point. Thank you. Thank you, sir.

13:43 - Did we also, I remember a conversation about also requiring the inventory before there could be any additional purchases.

13:52 - Yes. So we have, we have not moved forward with any capital outlay on any instrument purchases yet this year, as we have been solidifying that inventory audit.

14:02 - Okay. To be, to be completely honest with you, the page I’m most excited about is a timeline and the reason I’m excited about a timeline.

14:10 - If I could, for just a moment, is that first of all, it’s, it’s been vetted.

14:15 - I’ve shared it with the band directors, they, and the orchestra directors.

14:18 - They’ve all seen the document. They know what the expectations are, but if you’ll notice and I’d like to just highlight one specific element that it’s embedded in here, but I want to make sure that it’s overtly pointed out, um, in the very middle of the page that says after all the above steps are complete.

14:39 - They have, they have literally never had a step-by-step process of, for band or orchestra of how to accurately and systematically go through what they do at the end of the year.

14:52 - And then you see the other italicize statement, right.

14:55 - That. Right below that before any instruments are issued to students because you know, in practice at the end of the year, they’re actually starting at the high school level at the beginning of marching band, the beginning of summer band, things like that, that where they want to get instruments back in kids’ hands that are in good shape.

15:12 - But now we have an actual. If then statement following chain so that we know that we have a vetted procedure and they literally have to go into charms, close out the inventory for the gear.

15:26 - It’s, it’s a manual process. And that verification is part of that manual process.

15:33 - So as they go in close out the year, they can’t issue anything until the new year has begun.

15:39 - And the new year can begin May 15th if they have completed all the steps.

15:44 - So we’re not restricting them to a drop dead date of when it must happen so much as a window of time for their campus as to, by this point, it should have happened.

15:56 - And when it is complete, then you can move forward with meeting the needs of your campus.

16:01 - Does that, does that seem to be. Yes.

16:05 - More along the lines of what? So, so that’s a very long answer to your question.

16:09 - We haven’t bought anything for going forward.

16:12 - Okay. Is that been how’s how’s this change in process been received? Well, I’ll answer that in two ways.

16:21 - By the band directors, they have all said. Okay, we get it.

16:24 - We know this is a big deal and we must, I mean, informally, informally, they’ve, they’ve received this very well, um, at the high school and junior high level, um, I think many of them were glad for a formalized process to be able to be accountable.

16:40 - Um, I think the natural filtration of that instrument of that information to the orchestra directors, uh, Mr.

16:46 - Hayden could share the orchestra audit was.

16:49 - Just near. Perfect. Um, so because it came later and it’s a smaller number and they collaborate with their colleagues.

16:56 - I think they all knew that. There was a much higher standard of accountability than they had ever seen or received.

17:04 - And they know that as, as you mentioned about the partnership and going forward, and Mr.

17:09 - Hayden mentioned that this is now what we do not, we do this because it’s, it’s, it’s the standard as opposed to a reaction.

17:17 - Right. Is that also, that’s what I’m looking for.

17:21 - Just for my knowledge, elementary music instruments are not part of this.

17:25 - We’re not, we’re not expecting an elementary teacher to be turning in an inventory of how many marimbas and how many xylophones and move my purse.

17:34 - No, sir. In fact, um, we actually had a philosophical discussion in, in specifically in the string instrument world about bows.

17:41 - Like cello, bows, violin, bows Villalobos, because, um, they have a much shorter lifespan than an instrument because of the nature of what they are and how they’re used.

17:51 - And so I think our threshold of inclusion in inventory is anything that would be considered a capital outlay item that we’ve purchased with local funding.

18:02 - And, um, that would be primarily related to instruments.

18:06 - Should I tell you about the next phase real quick, like we’re, we’re going to be doing pianos next year because we believe that we have somewhere between three and 400 pianos in the school district.

18:16 - So those are not able to be liquified as assets like band and orchestra instruments are, you can’t really take a piano to a pawn shop, but, uh, but at the same time, they’re an expensive item and a capital outlay item.

18:29 - So we want to make certain that we have a very, um, established procedure of knowing what we have.

18:35 - And how we’re maintaining it because that would probably represent a significant amount of money as well.

18:40 - I would think the maintenance, the maintenance and upkeep of those is also a procedural thing that we have in place, but we also need with staff turnover, honestly, we have about two thirds of our fine arts staff are new in the last five years.

18:54 - So because of that, there’s a, uh, an ongoing professional development aspect of it.

18:59 - That’s procedural, let alone instructional.

19:02 - Thank you, Dr. Ward. Thank you.

19:04 - We’ve got a couple of questions, Dr. Horton.

19:05 - Yes, sir. Uh, on the inventory step steps in timeline, uh, number three deposit must be collected for each student owned instrument checked out by a student.

19:18 - Is that, um, is, is it R a. Sliding scale for the students, for the particular prod, uh, instrument they’re checking out.

19:28 - And also is it tied to their ability to pay it or who can pay it? Tim, thank you for asking that Mr.

19:34 - Hubert, the actual answer is it’s really, it’s not a sliding scale.

19:39 - It’s a binary. Yes or no. If, if they can’t afford it and they cannot, uh, pay it, then we have never held a student.

19:46 - Um, Accountable for being able to, um, if you can’t pay the instrument, it’s really a deposit for a cleaning fee or a repair fee.

19:57 - And I’ll go into that in just a moment, but we’ve never, uh, at the campus or district level told the students that they could not play an instrument because they couldn’t pay the deposit.

20:06 - So we have not, um, We have not established any policy that says that, that you would be able to do that in almost every campus, uh, situation that I’ve been involved in over the last almost six years.

20:20 - Um, that’s a conversation between director, principal and parent.

20:25 - To make certain that that access is there and able to be provided.

20:29 - Um, we also know that when you’re a percussionist and you are one of four people playing a set of drums, a new set of drum heads, uh, over a year’s period of time, it doesn’t come close to the $75.

20:42 - Um, instrument repair fee that, that they are asked to contribute, um, a chemical clean on a tube, but right now as $190.

20:50 - So if you’re using a school loan too, but we’re not expecting it as a one-to-one, uh, cost recovery measure, it’s more of a skin in the game type thing.

20:59 - Does that help? Well, that’s what I was.

21:02 - I obviously figured that’s probably what it was is just some kind of accountability measure.

21:06 - Yes, sir. And financially certainly motivates me how it really motivates most people as well.

21:12 - I just, I wanted to make sure I heard you say no kid was going to be held back from being able to rent an instrument out because they couldn’t financially come up with the money.

21:24 - Is that when you talk about, um, the cleaning fees.

21:29 - Do do, do the bands have partnerships with, um, with, um, what do they call like the clubs to help pay for that stuff? Or does that come out of the band budget or so actually it’s, uh, it’s really the, the current funding mechanism in, please.

21:47 - If I say this wrong, y’all stop me. But, um, is that for instance, let’s say that a, uh, A program has a hundred students using school owned instruments.

21:57 - And so that would be in theory, $7,500 that, that instrument.

22:02 - Sure. Repair fee is into their account at the school.

22:07 - So they, as invoices come through for repair or things like that, um, they, they deplete that amount first and when they get to the end of, and it goes into the activity fund at the school, I believe, or the general budget fund, they, they track it back through, um, That the campus level, when they’ve exhausted those funds and there are still needs, then the campus secretary sins, um, the excess repair or replacement or, or cleaning or whatever it might be to, um, the finance office and copies me for approval so that we can have another fail, safe to make sure that they have used all of their money prior to us.

22:50 - Funding what we need to additionally, either repair clean or, or whatever we need to do for him.

22:57 - So th so it’s, it’s a deposit that goes in.

23:01 - So they’re getting that money back it’s in terms of a deposit, it’s not a security deposit where you as a student, get that money back.

23:11 - It’s actually, um, I think we call it an instrument repair.

23:15 - That’s fine. Yes, sir. My lab.

23:17 - Yeah, that answers my question. I just want to make sure.

23:20 - That there is a cleaning fee. The kids are helping pay for that as well.

23:24 - It’s not going back to them. Thank you.

23:27 - Deposit in results. After everything is said and done, I’m glad we’re doing this.

23:32 - Do you expect there to be, what are your expectations after we do this inventory? Do you think we’ll have an increase in more students participating in band because there’s more instruments that we have found or.

23:46 - Financially an impact with, because we’re not having to purchase.

23:50 - What do you guys think the impact will be to the students for this? I think it’s, I think it’s multiple.

23:57 - Potential points of contact. One of them is I think we’re going to actually know what we have and the next step would be to assess the condition.

24:06 - And there there’s an actual formula for depreciation of instruments, which we have not gotten to because, um, depreciation over time may or may not result in replacement value.

24:18 - So if you lose a, an $8,000 tuba, And it was only worth $1,500 after 20 years, you still have to buy another $8,000 too.

24:26 - But which I think is the, is the premise from which this started.

24:31 - Um, so I think first and foremost, we’ll know what we have.

24:34 - And I think the second part of that is we’ll be able to assess based on enrollment trends, where we need to go.

24:40 - So there’s a little bit of a potential regression analysis available to us.

24:44 - Like if we see a program continually growing in enrollment, but the instrument inventory remaining static, especially at our higher SES campuses, I think we can predict where we need to allocate resources better at which.

24:58 - Has always been anecdotal and reactive. It’s never been able to the forecast or, or pro.

25:05 - So I think knowing what we have, and then we’re also working on enrollment trends and enrollment projections right now, so that we can see where we are and what we need because as our campuses grow.

25:18 - Typically our instrumental programs grow at a convincer right.

25:21 - That is anywhere from eight to 15% of the campus, depending on the campus.

25:26 - So at that point, um, we also were looking at, um, are we going to be able to keep up with the inventory? We have to be able to give kids access.

25:36 - So I think it’s knowing what we have and knowing where we’re going.

25:40 - I would like to believe that the, the other result of that is we’ll never have a student or parents say, well, you can’t be in band and you can’t be an orchestra because we can’t afford an instrument.

25:50 - I think we work that from the personal side right now, but I think in terms of inventory, I don’t think we’re looking to be a one-to-one.

25:58 - District. Cause I don’t think we can afford or support that.

26:01 - But what I do think is we’ll never have an access issue because of affordability.

26:06 - Okay. Thank you, Dr. Horton.

26:08 - Thank you. Well, I had a question about the deposit.

26:15 - Yes ma’am um, or the cleaning fee. So this is, this is paid at like the start of a school year.

26:22 - Yes. And on average, like in a high school, how many instruments are.

26:30 - Checked out that, that, uh, be honest with you and tell you I’m not a hundred percent sure.

26:35 - Cause I haven’t seen all of their instrument checkout forms from this year yet.

26:39 - Um, they, that also should be accurately reflected in the charms database, so we should be able to access that report pretty quickly.

26:48 - Um, and, uh, I’ll be honest with you. I don’t know.

26:51 - Um, I think it’s typically. The larger instruments that can’t be transported back and forth to home, like large brass and woodwind instruments and percussion instruments in the string world that string basses and cellos things that you would not want taken back and forth each day to a student’s home.

27:09 - So, um, to be really honest, I don’t know a quantity or a number, but I think we could find that out.

27:16 - Um, okay. And then the directors are collecting the fee, the cleaning fee.

27:23 - And w what it’s like a parent writes a check or they give them cash.

27:28 - It’s, it’s either a documented process through the activity fund his secretary at each campus.

27:35 - And I, I will be honest and tell you, I’m not, I can tell you, please don’t know.

27:40 - It goes as a fee, like every other fee. So we don’t deal with cash and we don’t cash doesn’t live in any in our classrooms.

27:45 - So that’s a fee that would go on the student’s account.

27:48 - So every student has an account. So they, you know, it will show up van man maintenance fee, $75 is gonna show up on their student account and the parents log into that account.

27:57 - That’s where they would pay for that fee. Their national honor society fee, prom ticket in there all time, everything else that they would pay it, it just shows up in their account.

28:07 - And so then the activity funds secretary handles that transaction.

28:12 - So we gotten away from remote cash transactions throughout the building.

28:19 - And then I have another question. Um, so the band instrument audits, this is performed in house, or this is something we refer out.

28:31 - Okay. Thank you. Other questions for Dr.

28:36 - Horton. Thank you all. No questions that are needed.

28:45 - This is the fun topic. Well, the next slide will make y’all happy.

28:53 - So in conjunction with all this we, um, two weeks ago, we performed a string instrument inventory, and part of the partnership.

29:06 - Is that you coordinate with each other. And we were able working with Dr.

29:10 - Horton to hit 13 schools in one week and do all these and get it knocked out, um, with him coordinating and kind of leading the charge and internal audit behind actually, you know, doing the inventory.

29:24 - Um, so we went out and we counted the string instruments only, no bows, no stands, no chairs.

29:32 - Um, There were 960 instruments, uh, listed on terms.

29:39 - And we only found five missing instruments out of all that.

29:43 - And we did add 28 instruments. So, um, That you know, the result obviously much better.

29:55 - And I think I agree with Dr. Horton.

29:57 - I think the word filtered down, one of the good things about internal audit is people talk after you audited and, um, They say, Hey, these people are thorough there.

30:10 - They’re going to be checking this, this and this.

30:12 - And it makes people go back. Maybe I need to check my terms.

30:17 - You’re making a positive impact on the district.

30:20 - It turned out great. Um, and so, um, again, appreciate all of Dr.

30:26 - Horton’s help on getting this done and getting a knocked out in a week.

30:31 - I would assume a lot of this stuff is people finally getting serious about looking hard.

30:36 - If you’re not being asked for it, you kind of forget and Oh, I can really got fun this and Oh, here it is.

30:41 - Now. I’m sure it was probably documenting properly on the band side.

30:46 - It’s it’s a doc. I think it was a documentation issue much more than it was a insurance issue.

30:53 - Things. Fallen into disrepair and been replaced, but never got taken out of the inventory on papers and still sitting there and just have to do a better job of getting back to the paperwork and making it, yeah.

31:05 - At the end of the day on the band instruments, it wasn’t that they were.

31:09 - Walking away. It was 20 years of no inventory.

31:12 - I mean, bottom line, I don’t think there’s a black market out there for high school instruments would be, are somewhat probably.

31:26 - Okay. Any other questions on string instruments? Abandoned instruments.

31:33 - Last slide is the 2021, 2022 risk assessment.

31:38 - I will be sending that out in June. I it’s really important that I hear back from him, Neil, um, the audit committee, Dr.

31:47 - known Darren, you all give me my marching orders.

31:51 - You tell me what, where you think the risk is, what you would like to see done.

31:56 - And, um, so it’s really critical that. This, this process that you all participate in it.

32:04 - Um, I have streamlined it for my predecessor.

32:09 - It’s 15 to 20 minutes at the most to complete.

32:12 - Um, it’s pretty simple. So that will be coming out.

32:15 - Like I said, around the middle. Sure.

32:18 - I hadn’t, if we ever as a district. Uh, put certain audit areas on any kind of a rotating audit schedule.

32:28 - Like we’re gonna, every three years do this kind of an audit every five years.

32:33 - We want to make sure we do this kind of an audit.

32:36 - I mean, we, we definitely. Payroll purchasing beyond there would all those things included in this risk assessment that you’re going to send us as well.

32:48 - I want to make sure that, you know, whatever is audited.

32:52 - So often if I have something different, we may each have a different focus area that we consider important within the district.

33:00 - And it’d be nice to know from us as board members and audit member audit committee members, that we know that every.

33:07 - Five years. There’s going to be abandonment.

33:09 - I’m just making it up. But you know what I’m saying? I just want to make sure, because I know there’s certain areas that are probably always, like you said, payroll is always going to be kind of a, a very big operating expense and probably should have a higher risk.

33:24 - Uh, writing in there, whether, whether we have findings or not is, is immaterial.

33:29 - It’s more about just the risk to the organization.

33:31 - Right. And what so on that risk assessment, it’ll say, so purchasing audit in 2020, um, We’ll be audited again, uh, 20, 23.

33:44 - Okay. So that information will be on the risk assessment for you.

33:47 - Perfect. The other thing I would ask the audit committee Dr.

33:51 - Null to think about is where you want to see internal audit in two years, five years.

33:57 - Um, for the last two years, we’ve, we’ve made some significant changes in internal audit.

34:03 - Um, but right now we’re an operational financial, internal audit.

34:08 - Do we want an it function? Do we want an educational program function.

34:13 - I mean that, those are the kinds of questions.

34:15 - That I look to you all to answer for, for down the road.

34:19 - Um, so that’s just something to think about the last item.

34:25 - This just came up, um, after I sent him the deck, as you all know, the child nutrition that, um, was removed from the audit plan.

34:36 - And so we are going to replace it over the summer with a critical spreadsheet.

34:41 - Um, audit. And just to kind of give you a handle, what that is, think of all the Excel spreadsheet, sheets that we use for budgeting for payroll or purchasing that.

34:56 - Determine, you know, how we spend money and these Excel spreadsheets, they have, some of them have complicated formulas and they have links and they have all these things.

35:08 - And so how are we making sure that those formulas and those links are secure and they’re they’re audited on, on a regular basis? Make sure the formulas are still correct, that that Link’s not broken.

35:21 - Who has access. To that Excel spreadsheet.

35:25 - So those types of issues are what we’ll be looking at.

35:28 - And actually it’s a perfect summer, um, audit it’s all here.

35:33 - Um, so that’s what we’ll be doing over the summers, working on that Hayden and I had a discussion about that a couple of weeks ago.

35:41 - And this, what we’re really looking at is model validation, any, any kind of direct model that we’re using.

35:49 - With Excel spreadsheets or things like that.

35:51 - And then we use those for estimating values for certain things, or, and that could be in a variety of different areas within the district.

35:59 - We just need to make sure that whatever formulas like Mr.

36:02 - Australian said that we’re using. That there hasn’t been a break in the, in the chain somewhere.

36:07 - And that, that is still accurate. And I think that that would help us out.

36:11 - We also, from my perspective, and I’ve been on the board 11 years now, I don’t know how many we have.

36:16 - And so it’d be a good idea just to know, you know, because sometimes when you’re doing this model validation, you can find out, well, we have a software program that we purchase as a part of a bigger package that we’ve never utilized.

36:28 - So there may be some. So process improvements that we can create through doing this as well.

36:33 - The other thing about me, I’ve done this out in the corporate world for socks.

36:36 - Um, you also find redundancy. Absolutely.

36:39 - You find, so you see these two spreadsheets are doing the same thing.

36:43 - They’re doing the exact same thing, three different ways.

36:46 - You have this master list. Uh, we’ll, we’ll call critical spreadsheets and those are the ones you use to making key business decisions.

36:54 - Um, and yeah, I’m a German Sanders. I think it’s important for us to know what’s out there.

37:02 - Just like the band instruments. I mean, we need to have an accurate inventory of those, those critical spreadsheets.

37:11 - Any questions? I got a quick question for you.

37:14 - Remind me as far as auditing, um, Clubs. Cause I know we have no jurisdiction over clubs, but I re I thought I had remembered at some point in the last six years, it was said that we offer auditing to the, you know, like the band club or the, all of the different clubs that have, even though they’re not part of CISD, they can sometimes be a reflection of us if they ever get in trouble or get caught.

37:40 - Cause we’re kind of tied to it. Do we still offer some type of auditing help or, or our accounting help or any jurisdiction to help them with, with what they do the hopper, um, help.

37:54 - We don’t do audits of them, but they call us and ask questions about taxes.

38:01 - And, you know, working with the state and the IRS and all that.

38:05 - And so we, we provide guidance on all that.

38:08 - We, we have seminars, um, for the clubs that go over all those issues, like, you know, the taxes and sales tax and all that.

38:18 - So we do work closely with them. And my admin, Laura is the one that that’s the point person for that.

38:25 - So yeah, we, we do offer him, we don’t do any record.

38:28 - We don’t do any director. No, we still have some clubs that are not set up under our umbrella tax exemption.

38:36 - Like Null. We still have a few booster clubs that have some had their own tax ID.

38:40 - Yeah, that’s correct. Now the, every booster club that functions, they do function separately, but it is an expectation that they provide annually to the principal.

38:51 - Um, their financials. So there is that level of oversight on the campus.

38:56 - Now, truthfully, the principals aren’t the same financial expert that Mr.

38:59 - Hayden is, but it does provide that question and answer opportunity, um, to make sure things are going straight.

39:07 - So that’d be like PTO or the booster clubs, any of those things that sort of function as not us, but affiliated with us.

39:15 - Gotcha. And I know it was a nonprofit.

39:18 - I know you assist with helping them understand the nine nineties and the understanding of designating a treasurer that can provide that information to their board.

39:28 - Correct. Great questions. Anything else? Thank you so much.

39:36 - I will see you all in September. All right.

39:39 - I think our next audit committee meeting. Will be scheduled for September.

39:43 - Do we have an exact date? I don’t know that we have, do we want to set that now or maybe second Wednesday, right? Eight September eight.

40:03 - Yes. That would, that would make, I believe there’s a principal.

40:06 - There is a principal meeting that day. Would anyone have an issue if we did it on the seventh? Just that month to have it on a Tuesday instead of a Wednesday, Tuesday after the labor day? Yes that’s.

40:28 - Okay. Any objections? All right, we’ll go ahead and set.

40:33 - September the seventh, 2021, 7:30 AM. As our next audit committee meeting.

40:41 - Any other discussion items, not on our agenda. .